I guess this is probably a good place as any to ask…
Does anyone else feel like retirement is becoming more unfeasible as they get older? The idea of being able to save enough money nowadays to retire at the age of 55 or 65 is becoming more bleak. Honestly the hardest thing between having to pay for health insurance, supporting my family, and finding ways to pay my bills makes things relatively depressing to think about. The cost of living is getting ridiculous where I live and it looks to only get worst as time goes on.
I think my biggest fear is the complacency I feel when I can feel how helpless it is to try to save.
I totally get this! I think the biggest thing for me is having small goals. When I remember that my small monthly savings goal will add up to something bigger over time, I feel much more optimistic!
Thats true,
I feel like the biggest issue is that I tend to look long term into these issues and see how little it is right now. This is what it is now, but it can be something much greater as I work towards bettering myself. The hardest step is always starting and I've already done that.
Thanks!
Of course!! I hope you're able to feel more positive about things :) BTW, maybe give yourself a goal by 2020, and make it there! That might help you feel strong going into 2020.
Here's what works for me. Signed up for my company's 401(k) with an initial 4% contribution rate. Because the money was taken out of my paycheck I never saw it and never missed it. Every six months I increased my contribution rate by 1% via my company's portal. It never seemed too painful. (A friend bumped up her contribution 1/2 % every month; she really rocks!) Bottom line: pay yourself first.
I totally understand. The message we have been listening to all our adult lives has been about building credit through obtaining loans that allow us to visually look wealthy (nice house, nice cars, nice whatever) but burdens us with payments. My husband and I had a financial crisis happen 6 years ago. Instead of looking at it as a tragedy defining who we are, we decided to turn it into a positive thing. We stopped purchasing stuff to have stuff. We down scaled our housing and subsequently the utilities reduced too. We either got rid of or evaluated the unnecessary expenses (satellite TV and Cell phones are the worst). And we also upped our 401ks each year by the same percent of a raise for our jobs each year, so the increase to our 401K never affected our take home funds. Every little bit makes all the difference in the world. We are learning the old school tactic of "cash is king". If we don't have the cash to buy it, we don't need it.
I like the 'cash is king' thing.
Yes, but remember if you put a little money into a savings account each month that over time it will increase and before you know it you will have saved a lot of money.
Angie, It often does take a difficult situation/tragedy to encourage/challenge us to make changes. We all react differently to situations such as this. While I will not get rid of my cell phone, we do evaluate the options we have/use and keep making those little changes. My next goal is to increase our retirement by more than we have been increasing it. I like the idea of 1/2% per month. That's a great idea! New Years resolution for me!
I agree I was just talking about how hard it seems to be able to save enough to retire on.
I'm worried that if I don't have a home paid off (I still rent) that I'll NEVER be able to afford life if I don't work full time :(
The new life style is that we are all poor-er. Ye will work until ye drops.
You know everything we are saying makes since, but the biggest issue is those of us who can’t increase adding to our 401K (if we have one) or just saving every month. Many places have high cost of living and pay in these areas is just high enough to cover basic bills, so what can we do? Not much is what, many of us struggle to put 1k away a year and that gets ripped out the minute an emergency happens, setting us back to zero again. What are we to do in today’s climate, only the really off individuals can save since their debt is small . So I guess the better question is how do I get my debt down small e mouth so that whatever I have allows me to live decently?
Absolutely. Wages are stagnant and COL is rising. Housing, college, and health care expenses are out of control. I've paid into Social Security since my first job at 17 and never expect to see a dime. Pensions are unheard of for my generation and the one coming into adulthood.
I don't really have any advice but you are not alone, and it's awful that this is our situation in the richest country in the world.
Yes, I hear this from others, especially those in their '30s.
@Daniel P. On my current savings plan, forecasts say I can expect to afford about three years of retirement. Hopefully as I continue to save it'll get better. but yeah, I hear you.
No, I do not feel that retirement is a pipe dream. The biggest hurdle is to start saving. I always save first when it comes to my budget. I have both retirement and additional savings deducted from my paycheck, as my employer allows multiple direct deposits. By having retirement and savings come out first I never miss the money as I never see it.
No, I do not feel that retirement is a pipe dream. The biggest hurdle is to start saving. I always save first when it comes to my budget. I have both retirement and additional savings deducted from my paycheck, as my employer allows multiple direct deposits. By having retirement and savings come out first I never miss the money as I never see it.
Great work, @Elena B. It's easy to see how retirement can seem like a pipe dream, but if you keep chipping away at it, it's certainly attainable. Also, great job setting up those savings to come directly out of your paycheck to keep working toward your goal and avoid the temptation of lifestyle inflation.
My husband and I had a fair amount in his 401k, then situations arose that left us no choice but to take out a chunk. We're in our 60's and we realize he's got to work til 70 or later. This is reality for most people nowadays. But I also know retirement isn't all it's cracked up to be!
It does feel like a long journey…if you dont have a budget or a plan. The FIRE community is a great source who are interersted in retiring early.
I don't feel like its a pipe dream even though I may end up retiring with not enough saved. I am saving with no specific goal amount in mind, just saving what I can and I figure I will make do in retirement with whatever it is I end up with.
I'm paying down debt to retire in 21/2 years and my grandson wants me to buy a home. I own a small condo now and he's always wanted a home with a yard. This is very tough as housing prices are higher than the spring. His parents are kind of losers, so I feel this is all on me.
Im actually trying to put a little more % into my 401K because im behind when it comes to when i started to save up. But so many people online say that 401Ks are just not enough at the end of the road.. What else can i do to help this?
Im actually trying to put a little more % into my 401K because im behind when it comes to when i started to save up. But so many people online say that 401Ks are just not enough at the end of the road.. What else can i do to help this?
@Anne D., whether or not your 401(k) will be enough to fund retirement really depends on how much money you need to fund your retirement. Those with more lavish lifestyles will generally need more money in retirement than those with simpler lifestyles. Aside from a 401(k), some other things you should consider as contributions to your retirement are government and employer retirement benefits (e.g. social security and pensions), traditional and Roth IRAs, HSAs, taxable investment accounts, and other savings.
I feel the same way sometimes but I'm still going to strive for my goal and do the best I can.
